Avista offers defensive income and discounted valuation, but Washington regulatory friction, wildfire liquidity needs, and stalled load growth keep AVA a fairly valued hold.
Overview
Avista Corp. (NYSE: AVA) is a Pacific Northwest regulated electric and natural-gas utility serving approximately 1.7 million people across 30,000 square miles, with 428,608 electric and 386,069 natural-gas customers at fiscal 2025 year-end. Its regulated monopoly territories, 8,300 miles of infrastructure, hydroelectric cost advantages, and 68% renewable generation portfolio support defensive revenue quality. **The core investment case is a 7% rate-base CAGR supported by a $3.4 billion 2026–2030 capital plan, combined with a roughly 5% dividend yield and 23 consecutive years of dividend increases.** Q2 2026 revenue rose 0.5% to $413 million, while non-GAAP utility EPS was flat at $0.29; full-year utility EPS guidance remains $2.52–$2.72. GAAP earnings benefited from non-regulated investment gains that may reverse. Shares trade near $38.83 at roughly 14x P/E, below peer averages, but the discount reflects the lost industrial load, paused 500 MW data-center opportunity, wildfire costs, and contentious Washington rate case. Near-term catalysts are the December 2026 WUTC decision, data-center negotiations, and wildfire-liquidity stabilization.